For the mutual accommodation of Hiru and Biru, Hiru accepts a bill drawn on him by Biru for three months for ~ 3,000 on 1st January, 2015. Biru discounts the bill immediately for ~ 2,700 and remits 1/3rd of the proceeds to Hiru. Before the bill becomes due, Biru remits the balance due to Hiru […]

Rita for mutual accommodation of herself and Mita, drew upon the latter a bill of exchange at three months for ~ 5,000 on 1.6.2013. Mita accepted the bill and sent it to Rita. Rita discounted the bill on 4.6.2013 at 8% p.a. and remitted half of the proceeds to Mita. Mita for similar purpose drew

On 1st July, 2014, G drew a bill for ~ 80,000 for 3 months on H for mutual accommodation. He accepted the bill of exchange. G had purchased goods worth ~ 81,000 from J on the same date. G endorsed H’s acceptance to J in full settlement. On 1st September, 2014, J purchased goods worth

A draws a bill for ~ 1,200 and B accepts the same for mutual accommodation in the ratio of 4:2. A discounts the bill for ~ 1,110 and remits 1/3rd of the proceeds to B. Before the due date, B draws another bill for ~ 1,800 on A in order to provide funds to meet

On 1st January, 2015, Vinod drew and Pramod accepted a bill at three months for ~ 2,000. On 4th January, 2015 Vinod discounted the bill with his bank at 15% p.a. and remitted half the proceeds to Pramod. On 1st February, 2015 Pramod drew and Vinod accepted a bill at four months for ~ 1,500.

Arun and Anand were friends and in need of funds. On 1.1.2015 Arun drew a bill for ~ 2,00,000 for 3 months on Anand. On 4.1.2015 Arun got the bill discounted at 10% p.a. and remitted half of the proceeds to Anand. On the due date, Arun could not remit his share, instead, he accepted

G and K enter into an accommodation arrangement whereunder the proceeds are to be shared as 2/3 and 1/3 respectively. G draws a bill for ~ 45,000 on 3rd April, 2015 at 3 months. G gets it discounted for ~ 44,600 and on 5th April, remits K’s share to him. On due date, K pays

Rita for mutual accommodation of 2 : 1 with Mita draw on the latter two bills of ~ 9,000 and ~ 6,000 for 3 months and 4 months respectively on 5th March, 2014. Both the bills were discounted with the bank on 8th March, 2014 @ 12% p.a. interest. On the due date of the

A, B and C, for mutual accommodation, drew and accepted the following bills: A drew on B for ~ 10,000 and on C ~ 8,000; B drew on A for ~ 12,000 and on C ~ 20,000; C drew on A for ~ 18,000 and on B ~ 7,000. All the bills were discounted at

Which of the following is true ? A. no cancellation entry is required when a bill is renewed B. a banker holds discounted bills as an agent for collection C. discount at the time of retirement of a bill in a gain for the drawee D. the noting charges are ultimately borne by the drawer.